InterCement has reported cement and clinker sales of 5.494Mt in the third quarter of 2022, up 1.2 per cent on the same quarter a year earlier (3Q21: 5.428Mt). Total sales over the 3Q22 advanced by 16.5 per cent YoY to US$492m, driven mainly by a solid volume performance in Argentina and healthy pricing across all locations.
Total EBITDA improved by 2.7 per cent YoY from US$122m in the 3Q21 to US$126m in the 3Q22, while adjusted EBITDA was up 2.1 per cent from US$127m to US$130m. Cost pressures continued to climb on the back of global inflation and higher energy costs, up 21 per cent over the 3Q22, although this was partially offset by price increases.
The company’s Argentinian operations continued to see robust growth, mainly boosted by the increase in sales of bulk cement on the back of higher activity in residential, industrial and private infrastructure projects. However, adjusted EBITDA in Argentina fell 8.6 per cent YoY to US$60.2m as a result of the high inflation environment.
African sales were slightly lower YoY, reflecting a combination of expansion in South Africa, which saw sales volumes improve 12.6 per cent YoY, but contraction in Mozambique and Egypt, where volumes fell 14.3 and 3.3 per cent YoY, respectively. South African adjusted EBITDA saw a 13.9 per cent increase, benefitting from a better operational performance, while in Mozambique this was up 207.5 per cent YoY due to better pricing and higher operational efficiency, despite the contraction in volumes.
Meanwhile, volumes in Brazil were down 5.6 per cent YoY as cement demand continued to soften, as seen in previous quarters, due to the moderate drop in homebuilding and home renovation activity. Adjusted EBITDA over the same period declined by 3.4 per cent YoY in Brazil to US$46.2m, affected by accounting adjustments of US$3m. Excluding this effect, Brazil would have shown an expansion of 2.3 per cent.
For the 9M22, cement and clinker sales stood at 15.295Mt, an uptick of two per cent YoY (9M21: 14.961Mt). Sales over the same period advanced by 23 per cent to reach US$1500m, with EBITDA seeing a one per cent rise to US$349m. Adjusted EBITDA advanced by six per cent YoY to US$364m.
